Traders who Micromanage
Are you sweating the small stuff?
It’s what so many of us get caught up in when trying to run our businesses.
The need to control all the small things in our work place and to get rid of the endless clutter.
When it comes to trading though, the best thing to do is to stop micromanaging. Stop trying to control the noise, the daily demands coming from external factors that lure you into a world of stress and anxiety.
Traders who micromanage are trying to outsmart the market. They read company reports, news items, broker newsletters, forums and expert commentary.
They end up forming a subjective opinion on market direction which is a sure fire way to lose money.
To become successful in most professions you need to be logical. Yet in trading logic doesn’t apply.
If you insist on micromanaging your trading you’re going to miss some profitable trends.
So what’s the solution?
Here are 5 sure fire ways to help you stay on track and stop micromanaging:
1) Understand that no one knows which direction the markets are going to move from one day to the next. So why spend hours trying to find logic to it all? Embrace the fact that you don’t know, and neither does anyone else.
2) Plan the trade and trade the plan. Yes, it seems like an overused piece of trading rhetoric. Yet if you have a simple trading plan that you stick to without exception, then you are on your way to trading mastery.
3) Accept your loss before entering your trade. This will remove an element of stress as soon as you place your trade. There are costs and expenses associated with doing business. For traders, a loss is a running cost. Accept it.
4) Pick the best and leave the rest. Another common phrase used in the world of trading. Don’t get caught out trying to pick lows in a stock that is in a downtrend. The trend is your friend, so stick with strength not weakness.
5) Try turning off your screens every now and then. You can waste an immense amount of mental energy watching the market, or hearing beeps as your market alerts trigger throughout the day. Turning off your screens may be the ultimate strategy to get micromanagement out of your daily routine.
